EDI VAN
EDI VANs or Value Added Networks have evolved in the
EDI community as a source of resolving the issues resulting
from communicating with a number of different trading
partners. Recent EDI experience shows that most companies
consider the use of an EDI VAN when
they reach an EDI volume of between 4 and 6 trading
partners. Of course, nowadays EDI can be transacted
using Internet technologies such as FTP, FTPS or AS2,
in addition to and instead of EDI VANs. In essence,
what an EDI VAN provides are the EDI communications
skills, expertise and equipment necessary to communicate
electronically with several parties. The basic function
of any EDI VAN is to receive, store, and forward electronic
messages. In this sense the EDI VAN serves as an electronic
mailbox.
An EDI VAN, in some respects, performs a function very
much like that performed by the US Postal Service. Like
an EDI VAN, the Postal Service receives mail from senders,
sorts the mail for the intended receiver, and delivers
the mail to the receiver’s mailbox. EDI VANs function
in the same way by providing an electronic mailbox for
EDI messages.
An EDI VAN establishes an electronic mailbox for each
trading partner. The sending partner transmits electronic
messages, either by dialing using phone lines or accessing
the Internet, to the EDI VAN. The EDI VAN receives
the electronic messages and sorts them by receiver. The
electronic messages are then sorted to the receivers’ mailboxes
until they are called for by, or sent to, the receiver.
An electronic mailbox at an EDI VAN can
be used whether you only send EDI messages, only receive
EDI messages, or do both. Most EDI VANs allow you to “pickup” your
incoming messages at the same time that you drop off
your outgoing messages. In addtion, most EDI VANs allow
for 24-hour per day, 7-day per week access to the electronic
mailbox.
Using an EDI VAN in this manner eliminates a number
of the problems associated with direct links with trading
partners. Advantages received from the use of an EDI
VAN as an electronic mailbox include:
- elimination of communication compatibility problems
- the ability to reach all trading partners with just
one network connection
- the ability to receive audit information
- the existence of a buffer between your computer and
that of your trading partner
Though EDI VANs have traditionally been central to EDI
trading partner relationships, it is in some ways becoming
yesterday’s technology. With the advent of the
Internet, EDI VANs first started to allow FTP access
and then with the advent of AS2, it became possible for
hubs to connect directly to their trading partners using
secure protocols and communication. As a result, EDI
VANs have added a lot of services to increase their value
proposition, but revenues in this sector of the EDI landscape
has been significantly reduced. EDI Service
As a small business, your first exposure to EDI may
have been through an EDI VAN. Whatever your experience
with EDI, an EDI VAN still could be an important part
of working with EDI. In the early days of EDI, the
EDI VAN was the only means of sending EDI data to your
trading partners. Of course, as the internet has
changed EDI, it has also changed the role of the EDI
VAN. An EDI VAN today is more of an aggregator – especially
for small businesses. While a significant part
of EDI business is sent using internet technologies such
as AS2 and FTP, the EDI VAN still can play a role in
helping small businesses communicate with their customers
and vendors.
Do you need to work with an EDI VAN? The answer is – it
depends. There still are retailers that will only
accept EDI through an EDI VAN. For the vast majority,
however, the choice of using an EDI VAN will be up to
you. The EDI VAN is an available resource, but
the retailer will also work directly with you. Should
you work with an EDI VAN? Again, the answer is – it
depends. Specifically, an EDI VAN is advantageous
if you are going to have limited use for EDI. The
EDI VAN already has established relationships with retailers;
this factor may make testing and deployment significantly
easier through the EDI VAN. At the same time, using
an EDI VAN can become expensive. Since the EDI
VAN monthly charges are based on how much data you send,
the more EDI data you send, the more the EDI VAN will
cost.
For the small business, using an EDI VAN or not using
an EDI VAN is a question of strategic importance. Specifically,
if EDI is strategic to your organization, then using
an EDI VAN may not be advantageous. The more data
you send through the EDI VAN, the more expensive the
EDI VAN will be. If, on the other hand, EDI is
simply something you are required to do and you don’t
plan on expanding your use of EDI, then using an EDI
VAN may have significant benefits in cost savings and
time savings. The best part is that with EMANIO’s
Trading Partner® software using an EDI VAN or not
using an EDI VAN makes no difference! Our software works
whether you use an EDI VAN or avoid the EDI VAN. |